6704 Tomlinson Terrace
Cabin John, MD 20818
|Prabhat Garg, Founder & CEO
Sandeep Jain, VP, Marketing
Samir Khuller, CTO
Kalyani Chadha, VP,
Harinder Kolhi, Board Member
Product Line and Services
TenderSys.com will provide one-stop information on worldwide procurement opportunities funded by international financial organizations such as World Bank, Inter-American Development Bank, Asian Development Bank, United Nations and other such sources, and will provide electronic documents and tools for participation in these opportunities. The user of our service, typically a manufacturer or trader anywhere in the world looking for buyers of his products, will enter his product name, for example “cement”, on our web site, and will receive a comprehensive list of worldwide RFPs (Request for Proposals) issued by buyers that have secured funding from any of the international financial organizations.
In addition to the RFP information, the user will be able to register his product to receive automatic email-alerts of new RFPs, information on past RFPs, assistance through our message-board and helpdesk, prepare and submit applications on-line, establish international contacts, and monitor the progress of his submission and follow-on contract.
TenderSys will be the first such service in the marketplace.
Technology/Proprietary. TenderSys will integrate pieces of existing technology such as e-documents, e-bidding, and e-rappers. The technology for integrating these will be our proprietary. In addition, an international network of marketing associates that will collect data and seek clients will feed proprietary first-hand information to us that would give us additional comparative advantage.
Typical buyers in this marketplace are the governments of developing countries that have secured loans and grants from international organizations; suppliers are manufacturers and traders all around the world. This marketplace handles transactions worth over $50 billion per year through competitive bidding processes. The problem in this marketplace is that it is highly fragmented and highly inefficient. A supplier has to search several sources of information to identify a potential opportunity, hire specialists to prepare documents that are unique for each buyer and financier, and establish international contacts to participate in a particular RFP. Large suppliers retain in-house staff to meet the challenge, while most other suppliers are either left out from the marketplace or compete from a disadvantaged position.
TenderSys will change this landscape. Our one-stop service for information and assistance will reduce the cost of information and participation for all suppliers. Improvements in efficiencies through the use of Internet and other electronic tools will reduce the procurement cycle from its current 6-9 months to 2-4 months, thus benefiting buyers and financiers as well. As a result, new suppliers will be able to enter the marketplace, increasing competition and resulting improvements in efficiencies.
Our core business model is based on a subscription service. Our clients would be worldwide manufacturers, traders, international financiers, and the governments of developing countries. Our annual subscription fee of $1,000 per year for basic information service and $1,500 per year for enhanced service is about one-third of what is being currently paid to access limited information from highly fragmented sources. Our initial target is to get at least 100,000 clients (only 2% of the market—a very conservative estimate) within first three-four years, giving us a revenue stream of over $100 million per year, with substantial upside potential in later years. In addition, starting third year, we plan to receive a transaction fee of 2% per transaction, which would give us a second stream of revenue with a market potential of over one billion dollars per year (2% of $50 billion marketplace).
Our Unique Advantage
Our management team has been in this marketplace for over 20 years, managing multi-million dollars international procurement in several countries. We have unique contacts with international financing organizations, with the governments of developing countries, and with suppliers in many countries. In addition, we have already started establishing an international network of marketing associates—already active in five countries—that gives us the first-mover advantage.
Marketing/Sales and Distribution
TenderSys is not a typical dotcom company waiting for eyeballs and hits. We will market our service through our “brick and mortar” international network of associates. We plan to retain 20 associates worldwide (four associates per geographical continent) on annual retainer-fee basis. These associates will gather advance information from the buyers, receive information on past RFPs, and will market our product and services to potential clients. We plan to develop demonstration CDs that will be distributed to our potential clients with a three-month free subscription to our web site; we are confident that the clients would subscribe to our service after that period.
Currently, the market is served by small consulting firms that provide information and assistance on the slices of the marketplace to their selected clients. Some web sites have recently emerged to provide RFP announcements, but the information remains fragmented and limited to just RFP announcements. TenderSys will be the first one to provide consolidated, comprehensive RFP announcements, e-documents, and help in participation. Our knowledge and contacts will pose high barriers of entry to potential competitors.